Feature article: Taxes
Get more of your refund throughout the year
Andrew Zumwalt, M.S., associate state specialist, Personal Financial Planning, College of Human Environmental Sciences, University of Missouri Extension
It is nice to get a big refund at the end of the tax year, but if you think about it, that means you were lending the IRS your money interest free. If you would like to get at least part of your refund in your paycheck throughout the year, there are two things you can do.
1. Reduce your withholding
Your employer is taking too much money from your paycheck for the taxes you will owe. To start getting some or all of the extra money now, change your withholding. Ask your employer for a W-4 form and instructions for changing your allowances so you can get more of your own money before tax time.
2. Apply for the Advanced Earned Income Tax Credit
You could get up to $1,500 in equal amounts in your paychecks throughout the year. How? Fill out a W-5 form to get the Advanced Earned Income Tax Credit. You can get the credit if you have at least one qualifying child and make less than about $33,000 a year.
For more information about changing your withholding or getting the Advanced Earned Income Tax Credit, call the IRS at 1-800-829-1040, ask someone at your local Volunteer Income Tax Assistance site, or contact your local University of Missouri Extension office.
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Last update: Tuesday, May 05, 2009
